Slide 1: Exchange filing cover letter
Date: 18th August 2020 Ref: KNRCL/SD/2020/101 & 102 To To Dept. of Corporate Services, National Stock Exchange of India Limited BSE Limited “Exchange Plaza”, P J Towers, Dalal Street, Bandra Kurla Complex, Fort, MUMBAI – 400001 Bandra (E), MUMBAI – 400051 BSE Code: 532942 NSE Code: KNRCON Sir, Sub:-
Slide 2: KNR Constructions Limited Investor Presentation August 2020
KNR Constructions Limited Investor Presentation August 2020 Positioned To Build A New India
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by KNR Constructions Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secu
Slide 4: Key Highlights & Result Update
Key Highlights & Result Update
Slide 5: Consolidated Financial Highlights
Financial Highlights Rs. Million Revenue EBITDA EBITDA Margins PAT +3% +5% +30 bps -17% 4,646 4,794 900 943 19.4% 19.7% 477 Standalone 398 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 Revenue EBITDA EBITDA Margins PAT Consolidated -2% +12% +310 bps -6% 5,307 5,225 1,301 24.9% 445
Slide 6: COVID-19: Impact on Operations
COVID-19: Impact on Operations ❑ Project execution at all EPC and HAM projects as well as BOT-Toll operations were suspended from 23rd March 2020 onwards due to nationwide lockdown to contain the spread of COVID-19 ❑ Post receipt of required permissions from State as well as Central Government autho
Slide 7: Financial Results
Financial Results Standalone Consolidated Particulars (Rs. Million) Q1 FY21 Q1 FY20 YoY Q1 FY21 Q1 FY20 YoY Total Revenue 4,793.7 4,646.0 3% 5,225.3 5,307.2 -2% Operating Expenses 3,150.1 3,053.2 3,173.3 3,393.5 Employees Expenses 277.6 271.4 281.4 275.4 Other Expenditure 422.6 421.2 469.7 480.0 EBI
Slide 8: Business Overview
Business Overview
Slide 9: Business Overview
Business Overview ❑ One of the leading companies providing Engineering, Procurement and Construction (EPC) services ▪ Major Projects in Roads & Highways – one of the fast-growing sectors ▪ Established presence in Irrigation and Urban Water Infrastructure Management Vision ❑ 20 years of experience of
Slide 10: Transformation
Transformation 1995 2006 2007 2008 ▪ Incorporated & Commenced EPC ▪ Bagged 1st BOT Project in Karnataka ▪ Bagged 2nd BOT project worth ▪ IPO & Listed on BSE and NSE Business worth Rs. 4,420 mn; Entry into Urban Rs.5,920mn in Telangana water Infrastructure with contract in Bangalore 2013 2013 2012 20
Slide 11: Top Management
Top Management Mr. K. Narasimha Reddy – Mr. K. Jalandhar Reddy – Founder Promoter & Managing Director Promoter & Executive Director ▪ Over 50 years of experience in the Highway sector ▪ Over 25 years of experience in the Highway and ▪ Started career in 1968 and engaged in the business of infrastruct
Slide 12: Supported by Professional Team
Supported by Professional Team ▪ A Bachelor of Engineering (BE) from MITS Gwalior (MP) with Over 35 years of total experience with ~20 years of Mr. T.L. Verma experience in Highway sector (Sr. Vice President - Projects) ▪ Working with the company since 2006 on various projects i.e. Bridges and Highw
Slide 13: Key Business Strengths
Key Business Strengths
Slide 14: Project Execution Capabilities
1. Project Execution Capabilities ❑ Top management’s active involvement at all stages of Project execution ▪ Selection of Major Raw Material ▪ Selection of construction Camp location ❑ Faster Decision making to ensure project completion on schedule ❑ Received Bonus for completion of construction ahe
Slide 15: Pan India Project Execution Capability
Pan India Project Execution Capability* Bihar Arunachal Pradesh No of Projects 1 No of Projects 1 Uttar Pradesh Value of Projects Rs. 1,411 mn Value of Projects Rs. 920 mn No of Projects 4 Value of Projects Rs. 1,704 mn Assam No of Projects 2 Madhya Pradesh Value of Projects Rs. 1,913 mn No of Proje
Slide 16: Project Execution Highlights
Project Execution Highlights Cement Concrete Road ▪ Completed Widening to 4/6 lanes and Strengthening of Existing two lane carriageway of NH – 5 in the State of Orissa for a length of 56.0 Kms with total contract value of work is Rs 2,310 mn ▪ Existing road was widened & strengthened with flexible p
Slide 17: In-house Construction Equipment
2. In-house Construction Equipment Sr. No. Machinery Quantity Sr. No. Machinery Quantity 1 Tippers & Tankers 1146 15 Rollers 36 2 Excavators 319 16 Crushers 28 3 Generators 220 17 Dozers 28 4 Concrete Mixers And Pumps 136 18 Light Soures 26 5 Compactors 133 19 Trailers 25 6 Loaders 79 20 Transformer
Slide 18: In-house Execution Team
3. In-house Execution Team 5% Total Employees* Project Engineering 1,975 31% Site Supervision 38% Site Engineers Equipment Operators 8% Admin & Office Staff 18% IN-HOUSE TEAM OF QUALIFIED AND EXPERIENCED EMPLOYEES LED BY PROVEN MANAGEMENT TEAM * as on June 30, 2020 17
Slide 19: Host of Marque Clients
4. Host of Marque Clients National Andhra Pradesh Ministry of Hyderabad Karnataka Karnataka Road Highways Road Development Road Transport Growth State Highway Development Authority of Corporation & Highways Corridor Improvement Corporation India (NHAI) (APRDC) (MoRTH) Limited (HGCL) Project (KSHIP)
Slide 20: BOT Portfolio
BOT Portfolio
Slide 21: BOT Portfolio – Annuity Projects
BOT Portfolio – Annuity Projects Particulars Patel KNR Infrastructures limited (PKIL) Patel KNR Heavy Infrastructures Limited (PKHIL) Stake 40% 40% Project Details Project Type Road-Annuity Road-Annuity State Karnataka Telangana JV Partner PEL PEIL Client NHAI NHAI Length (KM) 60.0 53.0 Concession S
Slide 22: BOT Portfolio – Toll Projects
BOT Portfolio – Toll Projects Particulars KNR Walayar Tollways Private Limited # KNR Muzaffarpur Barauni Tollway Private Limited Stake 100% 51% Project Details Project Type Road-Toll Road-Toll State Kerala Bihar JV Partner - JKM Infra Project Ltd Client NHAI NHAI No of Lanes Two to Four Two Length(K
Slide 23: HAM Portfolio
HAM Portfolio Trichy to Chittor to Ramsanpalle to Magadi to Oddanchatram to Particulars Kallagam Mallavaram Mangloor Somwarpeth Madathukulam* KNR Srirangam Infra KNR Tirumala Infra KNR Shankarampet Projects KNR Somwarpeth Infra KNR Palani Infra SPV Name Private Limited Private Limited Private Limite
Slide 24: Details of SPA with Cube
Details of SPA with Cube^ Total Equity Cube’s Equity Share KNR’s Equity Share Consideration for KNR’s Particulars (Rs. mn) (49%) (Rs. mn) (51%) (Rs. mn) 51% stake (Rs. mn)* KNR Sriranagm Infra Pvt Ltd 471.5 490.8 736.1 (SPA Signed: 28th Jan’19) 962.3 1.50 times KNR Tirumala Infra Pvt Ltd 701.9 730.6
Slide 25: Order Book & Business Strategy
Order Book & Business Strategy
Slide 26: Order-book Highlights
Order-book Highlights Key Projects Rs. Mn Order Book Break-up Magadi to Somwarpeth Project (KSHIP HAM) 8,144 45% Ramsanpalle to Mangloor Project (HAM) 5,077 31% 69% 5% Chittor to Mallavarm Project (HAM) 5,075 19% Trichy to Kallagam Project (HAM) 4,353 Captive (HAM Projects) State Govt. Central Govt.
Slide 27: Projects not yet included in Orderbook
Projects not yet included in Orderbook Rs. million 6,400 78,489 72,089 Project Cost Particulars (Rs. mn) Four Laning of Oddanchatram – Madathukulam section of NH - 209 (New NH-83) under Bharatmala Pariyojna Phase – I (Residual Project 6,400 under NHDP) in the state of Tamil Nadu on HAM Orderbook as
Slide 28: Order-book: State-wise
Order-book: State-wise Arunachal Pradesh No of Projects 1 Balance Value Rs. 822 mn Karnataka No of Projects 6 Balance Value Rs. 12,102 mn AP & Telangana No of Projects 13 Balance Value Rs. 52,559 mn Kerala No of Projects 2 Balance Value Rs. 96 mn Tamil Nadu No of Projects 11 Balance Value Rs. 6,510
Slide 29: Business Strategy
Business Strategy Focus on Projects involving Higher degree of engineering skills 03 Focus on securing EPC Continuously explores contracts from reputed growth opportunities by Clients and forming strategic Joint Concessionaire Ventures (JVs) 02 04 Capitalise on Opportunity Execute all the projects o
Slide 30: Financial Highlights
Financial Highlights
Slide 31: Standalone Financial Highlights
Standalone Financial Highlights Financial Year 2010* 2011* 2012* 2013* 2014* 2015* 2016^ 2017^ 2018^ 2019^ 2020^ Rs. 7,125 Rs. 7,930 Rs. 7,505 Rs. 6,921 Rs. 8,348 Rs. 8,761 Rs. 9,025 Rs. 15,411 Rs. 19,317 Rs.21,373 Rs. 22,442 Turnover $118.6 $132.0 $125.0 $115.2 $139.0 $140.0 $136.1 $238.3 $296.9 $3
Slide 32: Standalone Financial Highlights
Standalone Financial Highlights Revenue & EBITDA (Margin %) EBITDA Margin (%) 15.7% 17.1% 17.8% 16.8% 15.1% 14.4% 16.9% 14.9% 19.9% 20.0% 21.7% 21,373 22,442 19,317 15,411 7,930 8,348 8,761 9,026 EBITDA 7,125 7,505 6,921 3,839 4,270 4,871 Revenue 2,296 1,121 1,356 1,338 1,164 1,258 1,261 1,529 2010
Slide 33: Standalone Financial Results
Standalone Financial Results Rs. Million FY20 FY19 YoY Total Revenue 22,442.4 21,372.6 5% Operating Expenses 13,550.0 13,881.0 Employees Expenses 1,252.2 928.6 Other Expenditure 2,769.5 2,293.4 EBITDA 4,870.7 4,269.6 14% EBITDA margin 21.7% 20.0% +170 bps Other Income 565.9 633.9 Depreciation 1,918.
Slide 34: Standalone Balance Sheet
Standalone Balance Sheet ASSETS (Rs. Million) Mar-20 Mar-19 EQUITY & LIABILITIES (Rs. Million) Mar-20 Mar-19 Non-Current Assets Equity Property, plant and equipment 3,777.7 3,709.2 Equity Share capital 281.2 281.2 Capital work-in-progress 101.5 0.1 Right of Use Asset 26.0 0.0 Other equity 15,957.7 1
Slide 35: Standalone Net Working Capital Days
Standalone Net Working Capital Days 79 69 66 52 48 53 53 52 40 43 41 36 45 44 28 26 23 18 20 19 20 20 20 16 16 15 15 15 17 16 13 14 12 14 7 98 10 66 45 64 51 74 53 39 45 40 78 90 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Jun-20 Inventory Debtors Creditors Net Worki
Slide 36: Consolidated Financial Results
Consolidated Financial Results Rs. Million FY20 FY19 YoY Total Revenue 24,516.8 22,915.0 7% Operating Expenses 14,004.1 14,051.4 Employees Expenses 1,269.2 947.7 Other Expenditure 3,019.1 2,549.2 EBITDA 6,224.4 5,366.8 16% EBITDA margin 25.4% 23.4% +200 bps Other Income 656.9 743.4 Depreciation 2,54
Slide 37: Consolidated Balance Sheet
Consolidated Balance Sheet ASSETS (Rs. Million) Mar-20 Mar-19 EQUITY & LIABILITIES (Rs. Million) Mar-20 Mar-19 Non-Current Assets Equity Property, plant and equipment 3,809.8 3,746.0 Equity Share capital 281.2 281.2 Capital work-in-progress 101.5 0.1 Instruments entirely equity in nature 85.0 85.0 R
Slide 38: Cash Flow Statement
Cash Flow Statement Standalone Consolidated Particulars (Rs. Million) FY20 FY19 FY20 FY19 Net Profit Before Tax 2,936.8 2,905.9 3,244.7 2,923.6 Adjustments for: Non-Cash Items / Other Investment or Financial Items 2,157.3 1,624.8 3,000.8 2,906.6 Operating profit before working capital changes 5,094.
Slide 39: Shareholding Pattern as on 30th June 2020
Shareholding Pattern as on 30th June 2020 Shareholders Holding more than 1% of the Equity % to Equity (Other than Promoters) 10.74% ICICI Prudential Mutual Fund 6.66% DSP Mutual Fund 6.47% HDFC Mutual Fund 6.40% 32.17% Franklin Templeton Mutual Fund 2.00% 55.17% UTI Mutual Fund 1.94% Tata Mutual Fun
Slide 40: For further information, please contact
For further information, please contact Company : Investor Relations Advisors : KNR Constructions Ltd. CIN: L74210TG1995PLC130199 Strategic Growth Advisors Pvt. Ltd. Mr. K. Venkata Ram Rao CIN: U74140MH2010PTC204285 (GM - Finance & Accounts) Mr. Jigar Kavaiya / Mr. Parin Narichania venkatram@knrcl.c